## SURVEY OF INTERNATIONAL ECONOMICS COURSEMODULE 12: ## Textbook Reading:Interest Rate Parity ## Presentation Slides:## Recent Events/Analysis: |
## OVERVIEWThis session shows how to determine rates of return on foreign investments and how to apply those calculations to a model of exchange rate determination. Variables that affect rates of return, such as interest rates and expectations, are shown to influence the value of a floating exchange rate. The session will also provide a generalized version of the interest rate parity theory that goes beyond the rate of return formulas.
## VIDEO LECTURE
This lecture was recorded in Fall 2016. It is 79 minutes long.
## ANSWER KEYClick HERE for answers to the textbook questions. |